Expert: Arthur Naman - 11/20/2009

Question
Hi, I am new in accounting and I am using QuickBooks. My company is importing items from other countries. The question is, what account number and description (or under which account number I can create a new one) I can use for the Shipping & Handling my company is paying when we import those items?  

Answer
Generally, shipping and transportation costs are included as part of cost of goods sold, basically, the cost of items in inventory include shipping and related costs in addition to the "direct" cost, purchase price of each item.

The title of the account can be whatever sounds reason able to you:  shipping and receiving costs, transportation costs, etc.

The account number depends on the account numbering system you are using, if you are using one at all as QB does not require account numbers unless it is setup to do so.

If you are using account numbers, then the account number used would be in the range of numbers for cost of goods sold.